Unlocking IFRS for Insurers APU Actuarial Science Club Organised a Comprehensive Online Talk

The actuarial profession is deeply intertwined with "International Financial Reporting Standards" (IFRS), a set of accounting rules for the financial statements of public companies designed to ensure consistency, transparency, and comparability worldwide.

To help actuarial students gain a strong understanding of IFRS, the Actuarial Science Club (ASC) at the Asia Pacific University of Technology & Innovation (APU) recently organised an online talk titled “Unlocking IFRS for Insurers: What You Need to Know”.

Held on 22 June 2024, the talk featured Mr Kuek Yeong Chian, founder of Payunglah, and Mr Tommy Woo, a fellow of the Institute and Faculty of Actuaries (IFoA).

The event was divided into two sessions. The first half introduced international IFRS and provided an overview of IFRS 17. The second half focused on demonstrating measurement models and included a sharing session on financial and statutory reporting.

Mr Kuek began by explaining IFRS 17, highlighting its implementation and the differences from IFRS 4. He identified key changes and compliance requirements for the new reporting standard (IFRS 17). Additionally, he presented a survey from industry leaders to give APU ASC members a clearer understanding of IFRS 17.

In the second session, Mr Tommy demonstrated examples of calculating insurance liabilities such as the best estimate liability (BEL), risk adjustment, and contractual service margin (CSM) using the premium allocation approach (PAA) and general measurement model (GMM). He discussed factors leading to the liability for remaining coverage (LRC) and the differences between GMM and PAA.

Furthermore, Mr Kuek led a detailed sharing session on financial and statutory reporting, introducing new terminologies such as risk-based capital (RBC), accounting profit, embedded value (EV), economic capital (EC), international capital standard (ICS), and more. He also highlighted actuarial functions unrelated to IFRS 17, such as par fund management, internal capital adequacy assessment process (ICAAP), and resolution and recovery plans.

Overall, the "Unlocking IFRS for Insurers: What You Need to Know" online talk provided participants with a comprehensive understanding of IFRS 17 and a solid foundation for their actuarial careers.

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The club expressed gratitude to both speakers, Mr Kuek and Mr Tommy, for their invaluable contributions in equipping students with knowledge beyond the standard syllabus.